There will always be some conflicts in the supply chain, without regards to the industry. And this will be true in the future, I believe. More times than I can remember, I have presented my keynote presentation titled, The New Era of Manufacturer/Distributor Cooperation at either manufacturing or distribution association meetings.

While doing some research concerning this issue, the partners are satysfied with the level of good communication between them. That rarely proves to be the case, unfortunately. Through collaborative relationships, supply chain partners can improve.

To build efficient and productive relationship with any supply chain partner, important thing that will definitely help to improve the level of communication is an ability to understand a value that your supply chain partner has to receive from that relationship. One good example of this is that a procurement department can be in position to believe that a supply partner could lower the price in such way that they can not make any profit. This is simply crazy.

If you make an effort to understand the total value your supply partner needs and help them to receive that total value package, they will perceive you as a great partner and communication will become easier. Don’t give away the bank here, but to deliver the value your supply parnet needs, you should put your energies into the services and activities and other similar tasks.

Improvements of the Supply Chain

Just-in-time inventory purchasing and supplying as exemplified by the famous relationship between Wal-Mart and Procter & Gamble has continued to prove successful. Another example are Dell Computers and Home Depot that have built a strong strategic alliance with the justi-in-time inventory that is so much cost saving. You could also apply this in your business. It is possible to develop much closer relationship and communication with a supply chain partner.

To share the same strategy as your partner is a must in the business. The highest priorityis to promptly respond to any complaints and conflicts that arise. It is one of the best ways to improve the trust and build up loyalty betwenn you and your strategic partner.